California Business and Professions Code § 19613

(a) Except as provided in subdivisions (b), (c), (d), (e), and (f), the portion deducted for purses pursuant to this chapter shall be paid to or for the benefit of the horsemen and horsewomen at the racing meeting, and may include obtaining, providing, or defraying the cost of workers’ compensation coverage for stable employees and jockeys of licensed trainers. For purposes of this section, the trainers’ organization referred to in subdivisions (b), (c), and (d), known as the California Thoroughbred Trainers, Inc., shall be the plan sponsor, consistent with the definition set forth in Section 3 of the federal Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(16)(B)), as amended. (b) Any association other than a fair that conducts a thoroughbred racing meeting shall pay to the owners’ organization contracting with the association with respect to the conduct of racing meetings for administrative expenses and services rendered to owners, an amount not to exceed two-thirds of 1 1 2 percent of the portion, and to a trainers’ organization for administrative expenses and services rendered to trainers and backstretch employees an amount equivalent to one-third of 1 1 2 percent of the portion. That association shall also pay an amount for a pension plan for backstretch personnel to be administered by the trainers’ organization equivalent to an additional 1 percent of the portion. The remainder of the portion shall be distributed as purses. (c) Any other association may pay to the horsemen’s organization contracting with the association with respect to the conduct of racing meetings for administrative expenses and services rendered to horsemen an amount out of the portion as may be determined by the association by agreement or otherwise, but, in all events, shall include, relative to a thoroughbred horsemen’s organization racing, 1 percent of the portion for a pension plan for the trainers’ organization. The remainder of the portion shall be distributed as purses. (d) (1) Notwithstanding subdivisions (b) and (c), any association conducting a fair racing meeting shall pay to the horsemen’s organizations contracting with the association with respect to the conduct of races for their respective breeds of horses at the meetings for administrative expenses and services rendered to their respective horsemen those amounts out of the portion as determined by the horsemen’s organization for the respective breeds with the approval of the board. Pursuant to this subdivision, amounts not to exceed 3 percent of the portion for the owners’ and trainers’ organizations shall be distributed to any thoroughbred owners’ and trainers’ organizations contracting with an association for a fair racing meeting or participating in mixed breed racing meetings as follows: two-thirds of 1 percent to the owners’ organization and one-third of 1 percent to the trainers’ organization for administrative expenses and services rendered to both owners and trainers, 1 percent for welfare funds, and 1 percent for a pension program for backstretch personnel, to be administered by the thoroughbred trainers’ organization. (2) For purposes of subdivisions (b) and (c) and paragraph (1), the 1 percent amount for a pension plan or program may include all reasonable, documented administrative expenses attributable to the pension plan or program, including, but not limited to, the establishment, amendment, operation, or termination of the pension plan or program. (e) Any association other than a fair that conducts a quarter horse racing meeting shall pay to the horsemen’s organization contracting with the association with respect to the conduct of racing meetings for administrative expenses and services rendered to horsemen, an amount not to exceed 3 percent of the portion. The remainder of the portion shall be distributed as purses. (f) For racing meetings other than thoroughbred meetings, if no contract has been signed between the a

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